NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE), managed by CEO Barak Eilam, today reported its results for the first quarter of 2017. Company revenue totaled $308 million, 36% more than in the first quarter of 2016, in line with the analysts' forecasts.
NICE's non-GAAP operating profit amounted to $74 million, up 27% compared with the corresponding quarter last year, and its non-GAAP net profit reached $55 million, $0.89 per share, 11% more than in the corresponding quarter in 2016 and higher than the $0.05 per share predicted by the analysts. The company's GAAP net profit totaled $17.3 million, down 51%, compared with the first quarter last year.
NICE, which provides customer relations and risk management solutions, has a $3.9 billion market cap. The company completed its acquisition of US company InContact for $1 billion in cash in late 2016, after having made two other acquisitions during the year: Nexidia for $135 million and Voiceprint International for $21.7 million.
Eilam said, "We were also very pleased to see a substantial increase in recurring revenue. With recurring revenue now representing almost two thirds of our total revenue, it gives us additional confidence and visibility into the business.”
Concerning the integration of InContact, Eilam commented, "We have integrated a great many elements of NICE's solution to date in the cloud solutions provided by InContact, and dozens of InContact customers have already decided to integrate NICE's products in their systems. We continue to see an increasing rate of installing new solutions and using them."
In February this year, when NICE announced its 2016 results, Eilam announced a new strategic plan for the company, called NICE 2b, with the aim of reaching $2 billion in sales . The company did not give a time for achieving this goal.
NICE's management now believes that its revenue in the second quarter of this year will total $309-319 million, with a non-GAAP profit of $0.84-0.90 per share. For all of 2017, NICE believes that revenue will reach $1.33-1.35 billion, with a profit per share of $3.85-4.05 ($0.05 per share more than in its forecast from February).
Published by Globes [online], Israel Business News - www.globes-online.com - on May 4, 2017
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